FOCUS

Question 1

Definition of Retailing

Answer 1

Retailing can be seen as any business who focusses their marketing efforts on the final consumer, with the intention of selling goods or services to them.

Question 2

Understanding 5 Customer Demands

provide examples

Answer 2

1. Who is the customer?
2. Where do customers buy?
3. When do customers buy?
4. What do customers buy?
5. How do customers buy?

Question 3

3 Important factors to consider when choosing the right place

Answer 3

Location
Store Layout
Store Planning

Question 4

The seven Rights of Retailing

Answer 4

the right product
the right quantity
the right quality
the right place
the right time
the right price
the right service

Question 5

Consumer

Answer 5

Consumers can be identified as people who:
identify a need or desire
make a purchase
then dispose of the product during the consumption process

This explains why consumers with their particular needs, buying power and behaviour are the chief components of the market environment.

Question 6

The importance of historic sales patterns

Answer 6

Historic sales patterns look at the best and the worst sellers from a previous season and are depicted in a report format to show “lessons learned”.

A dull repeat of old formulas isn’t needed.
A fashion business must not repeat historic buying failures, although a successful history is no guarantee of future success in the fickle world of fashion.

Question 7

Bottom-up planning

Answer 7

Bottom-up planning is the analysis that begins with what was sold: how much, what kind, when and at what price. Projections are then made for the coming sales period and investment in merchandise is based on previous sales. Bottom-up planning is a daily task of every merchandise manager.

Question 8

The importance of historic sales patterns

Answer 8

Historic sales patterns look at the best and the worst sellers from a previous season and are depicted in a report format to show “lessons learned”.

A dull repeat of old formulas isn’t needed.
A fashion business must not repeat historic buying failures, although a successful history is no guarantee of future success in the fickle world of fashion.

Question 9

Bottom-up planning

Answer 9

Bottom-up planning is the analysis that begins with what was sold: how much, what kind, when and at what price. Projections are then made for the coming sales period and investment in merchandise is based on previous sales. Bottom-up planning is a daily task of every merchandise manager.

Question 10

Define Stock turn and stock intake planning

Answer 10

Stock turn is simply a way of measuring how many times a business changes the stock that it has on offer to the customer during the course of a trading year (Jackson, 2001:100).

Question 11

To measure annual stock turn there is a simple formula that can be applied by the merchandiser:

Answer 11

Stock turn = Stock turn = Annual sales value/ Average monthly stock value

Question 12

Why is stock turn important for the retailer?

Answer 12

In the fashion industry it is very important for a retailer to “turn” their stock as many times as possible throughout the season or year. Without regular change and update of stock, a fashion retailer becomes stale and boring.

Question 13

Planning Non staple stock

Answer 13

Pre set order and quantities and automatic re orders are not possible with non staple goods.

Retailers should consider price, size, colour, and style to help them select the non staple items that will satisfy customer demands

Question 14

Planning by Price

Answer 14

It is necessary to offer a few different prices for the merchandise in each category. This is because the purchasing power and quality demands of customers vary. In addition most clients like to compare similar items before deciding what to buy.

Question 15

Planning by Size

Answer 15

Knowing what size to oder is important to retailers buying merchandise such as home furniture or clothing, tools or tiles. Retailers need to buy to meet the demands of customers.

Question 16

Planning by Color

Answer 16

Colour has become an important factor. In some cases such as in women shoes the colour can become more important that the material of which the merchandise goods are mede of.

Question 17

Planning by Style

Answer 17

Trade magazine, suppliers representatives and competitors can provide useful information as to what styles to carry. However nothing can replace having a good knowledge of your consumers tastes.

Question 18

Grid Layout

Answer 18

Arranges displays in rectangular fashion so that the aisles are parallel.
Traffic Control is regulated through the store. The gridiron layout is the arrangement of aisles and fixtures in a repeating, rectangular pattern.
It’s advantageous to small stores because of the simplicity. The regular sized aisles require little floor space. A lot of merchandise can be displayed in a limited amount of space. The use of the standard fixtures will save on costs.
Building costs will remain at a minimum because this arrangements adapt to structural variations. Customers can find merchandise easily. Unfortunately this layout tends to be uninteresting and limits the customers freedom of movement through the store.

Question 19

Free Flow Layout

Answer 19

This is a very informal layout. Displays consist of various shapes and sizes. The fixture shapes and aisle patterns tend to be of an irregular arrangement. This is a flexible arrangement. A store can easily look larger or smaller by arranging the fixtures, without affecting the general layout. Amount of stock on display can be varied to match different sales variations without removing movable display stands. This can contribute in creating a unique look.

Question 20

Boutique Layout

Answer 20

This layout divides the store into a series of individual shopping areas, each with its own theme.

Question 21

P-O-P displays

Answer 21

P-O-P displays are important because they also have to be worked into the floor plan per seasonal event. P-O-P displays stimulate impulse buying to increase sales of items. Think of till points and waiting areas.